LG Energy Solution (XKRX:373220) Cash-to-Debt : 0.46 (As of Dec. 2023)

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What is LG Energy Solution Cash-to-Debt?

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. LG Energy Solution's cash to debt ratio for the quarter that ended in Dec. 2023 was 0.46.

If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, LG Energy Solution couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2023.

The historical rank and industry rank for LG Energy Solution's Cash-to-Debt or its related term are showing as below:

XKRX:373220' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.19 Med: 0.4 Max: 0.73
Current: 0.46

During the past 4 years, LG Energy Solution's highest Cash to Debt Ratio was 0.73. The lowest was 0.19. And the median was 0.40.

XKRX:373220's Cash-to-Debt is ranked worse than
69.83% of 3000 companies
in the Industrial Products industry
Industry Median: 1.205 vs XKRX:373220: 0.46

LG Energy Solution Cash-to-Debt Historical Data

The historical data trend for LG Energy Solution's Cash-to-Debt can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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LG Energy Solution Cash-to-Debt Chart

LG Energy Solution Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

0.34

0.19

0.73

0.46

LG Energy Solution Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash-to-Debt	Get a 7-Day Free Trial							0.73	0.58	0.52	0.46	0.46

Competitive Comparison of LG Energy Solution's Cash-to-Debt

For the Specialty Industrial Machinery subindustry, LG Energy Solution's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

LG Energy Solution's Cash-to-Debt Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, LG Energy Solution's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where LG Energy Solution's Cash-to-Debt falls into.

LG Energy Solution Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

LG Energy Solution's Cash to Debt Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	5073783	/	(3211456	+	7720833)
	=	0.46

LG Energy Solution's Cash to Debt Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	5073783	/	(3211456	+	7720833)
	=	0.46

LG Energy Solution (XKRX:373220) Cash-to-Debt Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

LG Energy Solution Cash-to-Debt Related Terms

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LG Energy Solution (XKRX:373220) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » LG Energy Solution Ltd (XKRX:373220) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR

Website

https://www.lgensol.com

LG Energy Solution, or LGES, is the third-largest battery maker for electric vehicles, or EVs, with about 14% global share in the first half of 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for close to 60% of total revenue in 2022. Besides EV batteries, LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai Motors and Stellantis.

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